PETALING JAYA: Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Aziz has warned that US president Donald Trump’s persistence to impose “reciprocal” tariff on goods from China could lead to Apple iPhones’ prices to be equivalent to a price of a car.
In an Instagram post, yesterday, the minister further cautioned that the policy would lead to ripple effects on exports and consumer goods in Malaysia due to the major shift in global trade caused by the tariff effect.
Citing predictions from analysts, Tengku Zafrul said an iPhone made entirely in the US could shoot up to US$3,500 (RM16,000), from the current US$549 (RM2,421).
He pointed out when prices go up in the US, other countries are also affected as iPhone prices globally are benchmarked against the US.
In addition to dealing with the possibility of unaffordable iPhones, Tengku Zafrul said the after effects to Malaysia would involve its export demand, substantially semiconductors.
Despite Trump appearing to have exempted semiconductor chips at the moment, Tengku Zafrul said there was no guarantee that the president would not change his mind again later.
Stressing his opposition with the tariffs issued by Trump, Tengku Zafrul said open trade was essential for trading nations such as Malaysia.
On April 2 Trump had announced its “Liberation Day” tariffs, seeing Malaysia hit with a 24% rate.
However, Trump announced a 90-day pause on all countries except China, seeing the tariff going to the baseline 10% after.
